Vehicle software maker Applied Intuition raises $250 mln from Porsche, others

U.S.-based vehicle software supplier Applied Intuition has raised $250 million in its latest Series E funding round, valuing it at $6 billion, the company said in a statement on Tuesday.

The financing was led by Lux Capital, Elad Gil, and Porsche Investments Management, the sports car manufacturer's subsidiary, the company said. This marks a jump in valuation from Applied Intuition's last round at $3.6 billion in late 2021.

The company said it aims to use the funding to make investments in generative artificial intelligence by investing in synthetic data and computers to develop AI models across products. The investment from Porsche is also the first time the startup received funding from carmakers as it works with a wide range of original equipment manufacturers.

"We want to further strengthen Porsche's expertise in the field of software and customer experience," Lutz Meschke, Porsche AG's P911 chief financial officer said in a statement.

Founded in 2017, Mountain View, California-based Applied Intuition sells software tools to build autonomous systems for vehicles. The company has been cash flow positive for years and will have about $1 billion to invest following the fundraising, according to Qasar Younis, chief executive at Applied Intuition.

"We're going to work on even bigger projects together with our partners, because this shows we have the foundational strength to handle more long-term and strategic projects," Younis said.

The company serves vehicle makers including Toyota Motor 7203, Nissan 7201, and LG Electronics 066570 among others, who use its tools for the development of various software systems across passenger cars, construction and mining vehicles.

It sells to the U.S. government to power autonomous systems in defense, a growing sector that accounts for less than half of the company's revenue, Peter Ludwig, its chief technology officer said.